If in 1992 the CPI were 200, this would indicate that prices have doubled since the current base period of
A) 1956-58.
B) 1982-84.
C) 1988-89.
D) 1974-75.

Question

Quizplus · Accepted Answer

The CPI is a measure of the average prices of goods and services commonly consumed by households in a country. The base period is the period against which all other periods are compared. In this question, the CPI in 1992 is given as 200. Since this is double the value of the base period, it implies that prices have doubled since the base period. Based on the answer choices, the most appropriate base period is 1982-84, which is the only one where the value of the CPI in the base period is 100 (the standard value used to represent the base period).

If in 1992 the CPI Were 200, This Would Indicate